Unprecedented price increases for a wide range of goods and services used in construction pushed up contractors’ costs by a devastating 26.3 percent from June 2020 to June 2021, according to an analysis by the Associated General Contractors of America of government data released today. Association officials cautioned that rising materials prices are making it difficult for many construction firms to benefit from the re-opening of the economy, undermining the sector’s ability to add new, high-paying jobs.
“Contractors have been pummeled in the past year by cost increases, supply shortages, and transport bottlenecks,” said Ken Simonson, the association’s chief economist. “Meanwhile, falling demand for many types of projects meant contractors could not raise bid prices enough to recoup these expenses.”
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